Mr.Bittner,
Can you give the readers of this site a status report on the USSSF?
USSSF Status Report?
Moderators: Jonathan Harms, Lynn Kramer, Chris Cousineau, Maria Carrasco, Russel Cantor
-
Rick Stanziale
- Red Clay Racing
- Posts: 579
- Joined: Sat Sep 07, 2002 2:00 am
- Location: Athens, GA
- Contact:
-
Adam Trahan
- Phoenix, AZ, USA
- Posts: 795
- Joined: Tue Apr 02, 2002 2:00 am
-
Andy Bittner
- GBJ
- Posts: 394
- Joined: Tue Oct 15, 2002 2:00 am
- Location: Gaithersburg, MD
Adam, Forgive me for not even noting that this question was ever posted, as I'd been so busy with The 3rd Gathering.
Now that I am past T3G, I can say that there is communication amongst the USSSF Board of Directors, things are happening, and people can expect news within the next week.
I can also say this, the USSSF is established as a national non-profit sporting organization, and has every intention of achieving 501(c)(3) status. This status allows the organization to receive charitable grants and donations which are also deductible for the donor. A 501(c)(3) status will lend a great deal of energy and options for the long-term survival of the organization, which will hopefully continue to dedicatedly advance the causes of the sport of slalom skateboarding.
The United States Slalom Skateboarding Federation WILL NOT be offering any insurance programs and will not be linked, insurance business-wise with any commercial insurance interests.
I don't write the IRS regulations. I wasn't there when they wrote them either, so don't try to get me into an argument over whether it's right, wrong or otherwise that we accept this restriction.
As is clearly stated on page 22 of IRS Pub. 557 (Chapter 3, 501(c)(3) Organizations), under Organizations Providing Insurance, it states the following:
"An organization described in section 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consist of providing commercial-type insurance."
The key here are the terms "no substantial part". They seem vague and yet completely restrictive. In my personal association management experience, I have found that providing a list of insurance sources in a periodical publication does not cross the line, while endorsing a specific program does. It was even very necessary for staff to be aware of expressing no preference, for personal reasons or otherwise, for one insurance vendor over another.
Any sport organization offering or endorsing specific commercial insurance availability IS NOT a non-profit organization.
It is my understanding then that organizations that are NOT non-profit or not-for-profit organizations are for-profit organizations. For-profit organizations are just that, for-profit. If you ever find yourselves wondering what the base motivation for any action of any organization also offering insurance, just remember for-profit.
The obvious exception here is the most well-intended group of people, who sacrifice themselves, their funds and their efforts on the altar of trying to support their sport. Those are the people who think that they become a non-profit by calling themselves one, but don't understand all that it takes in the U.S. to achieve and maintain all of the REAL benefits of being a non-profit. Therefore, these people end up as for-profit organization operators who are operating with something other than for-profit in their heads and are almost certainly doomed to fail if they don't see an experienced non-profit CPA and attorney soon.
There will be more information from the USSSF very soon.
<font size=-1>[ This Message was edited by: Andy Bittner on 2003-05-09 07:25 ]</font>
Now that I am past T3G, I can say that there is communication amongst the USSSF Board of Directors, things are happening, and people can expect news within the next week.
I can also say this, the USSSF is established as a national non-profit sporting organization, and has every intention of achieving 501(c)(3) status. This status allows the organization to receive charitable grants and donations which are also deductible for the donor. A 501(c)(3) status will lend a great deal of energy and options for the long-term survival of the organization, which will hopefully continue to dedicatedly advance the causes of the sport of slalom skateboarding.
The United States Slalom Skateboarding Federation WILL NOT be offering any insurance programs and will not be linked, insurance business-wise with any commercial insurance interests.
I don't write the IRS regulations. I wasn't there when they wrote them either, so don't try to get me into an argument over whether it's right, wrong or otherwise that we accept this restriction.
As is clearly stated on page 22 of IRS Pub. 557 (Chapter 3, 501(c)(3) Organizations), under Organizations Providing Insurance, it states the following:
"An organization described in section 501(c)(3) or 501(c)(4) may be exempt from tax only if no substantial part of its activities consist of providing commercial-type insurance."
The key here are the terms "no substantial part". They seem vague and yet completely restrictive. In my personal association management experience, I have found that providing a list of insurance sources in a periodical publication does not cross the line, while endorsing a specific program does. It was even very necessary for staff to be aware of expressing no preference, for personal reasons or otherwise, for one insurance vendor over another.
Any sport organization offering or endorsing specific commercial insurance availability IS NOT a non-profit organization.
It is my understanding then that organizations that are NOT non-profit or not-for-profit organizations are for-profit organizations. For-profit organizations are just that, for-profit. If you ever find yourselves wondering what the base motivation for any action of any organization also offering insurance, just remember for-profit.
The obvious exception here is the most well-intended group of people, who sacrifice themselves, their funds and their efforts on the altar of trying to support their sport. Those are the people who think that they become a non-profit by calling themselves one, but don't understand all that it takes in the U.S. to achieve and maintain all of the REAL benefits of being a non-profit. Therefore, these people end up as for-profit organization operators who are operating with something other than for-profit in their heads and are almost certainly doomed to fail if they don't see an experienced non-profit CPA and attorney soon.
There will be more information from the USSSF very soon.
<font size=-1>[ This Message was edited by: Andy Bittner on 2003-05-09 07:25 ]</font>